NBET Exposes Massive Debts as Eko, Abuja, 9 Other DisCos Owe FG N2.6 Trillion
- The NBET has revealed that the country’s 11 DisCos owe the Federation Account a combined N2.6 trillion as of September 2020
- The House of Representatives Committee on Public Accounts has summoned the DisCos, following findings in the 2021 Auditor General’s report
- The Committee also plans to invite other market participants to address the issues raised and demand clear repayment plans
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Nigerian Bulk Electricity Trading Company (NBET) Plc has disclosed that the country’s eleven electricity distribution companies (DisCos) collectively owe the Federation Account a staggering N2.6 trillion.
Source: UGC
NBET’s Managing Director, Johnson Akinnawo, revealed the figures during an appearance before the House of Representatives Committee on Public Accounts.
In response, the Committee directed the indebted DisCos to appear before it to explain the mounting liabilities.
According to documents submitted by NBET, the debt profile as of September 30, 2020, stood at N2.6 trillion.
The breakdown shows Abuja DisCo owing N330.4 billion; Eko DisCo, N231 billion; Benin DisCo, N233.2 billion; Enugu DisCo, N258.3 billion; and Ibadan DisCo, N325.7 billion.
Others include Ikeja DisCo with N310 billion; Jos DisCo, N161.7 billion; Kaduna DisCo, N277.7 billion; Kano DisCo, N211.7 billion; Port Harcourt DisCo, N239.7 billion; and Yola DisCo, N107.4 billion.
According to The Nation, the development follows findings in the 2021 Auditor General’s report, which uncovered several anomalies in the power sector.
These included N30 billion in uncollected debt from market operators, N549 million shortfall in NBET’s 1% income from institutional charges, and N100 billion paid to Generation Companies (GenCos) for electricity not delivered to the national grid.
The report also flagged N26 billion owed by two foreign companies for exported electricity to Togo, Benin, and Niger, N166 billion under-remitted by DisCos against Nigerian Electricity Regulatory Commission (NERC) benchmarks, and N2.7 billion in unpaid invoices.
During the session, Hon. Yahya Kusada moved a motion summoning all 11 Discos to clarify their failure to meet financial obligations, which was seconded by Hon. Billy Osawaru.
Kusada stated:
“With the magnitude of liabilities before us, it is imperative that these companies appear before the Committee to clarify their positions and outline plans for repayment.”
The Committee further resolved to summon other market stakeholders and operators mentioned in the Auditor General’s report. Dates for the hearings are expected to be communicated soon.
Source: UGC
FG company owes billions in electricity bills
Meanwhile, the NERC had issued a warning that Ajaokuta Steel Company risks disconnection from the national power grid over an outstanding electricity debt exceeding N5.63 billion.
According to NERC, the steel plant has continued to receive electricity supply but has failed to settle its obligations to key operators in the power market, raising concerns about financial discipline in the sector.
The FG is pushing ahead with efforts to revive the moribund steel complex through ongoing negotiations with Chinese investors, even as the company’s unpaid energy bills continue to rise.
Source: Legit.ng
